Home Depot: Customer Service Initiatives Increase Revenue

By Jeff Williams:In the face of a very competitive environment and concerns for the housing market, Home Depot (HD) looks to have a very strong fiscal year 2012.In Q4 2011, Home Depot's revenue increased 5.9% to $16.014 billion, up from $15.126 billion. Home Depot reported earnings of $744 million, or .$50 per share, which is up from a year-earlier when Home Depot reported a profit of $587 million, or $.36 per share. The improved performance was due to the stores customer service initiatives. Because of the companies attention to building customer service initiatives, Home Depot's strong quarter has been led by the quarterly comparable store sales.Over the past few years, Home Depot has been increasingly focused on building it's customer service initiatives. The plan is for Home Depot to create a more convenient store by creating more store services. Frank Blake stated in Home Depots Earnings Conference Call:
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Home Depot Inc.’s promotion of Craig Menear to president of its U.S. retail division is part of a succession plan for Chief Executive Officer Frank Blake, according to a person with knowledge of the situation.

Weak consumer spending has led to dreary financial results and outlook for majority of the retailers. However, Home Depot Inc. (NYSE:HD) remains an exception. The home improvement retailer announced its financial results for the third quarter of fiscal 2015 (3QFY15) before the opening bells today, exceeding the market’s expectations. While the consumers shied away from other discretionary retailers during the quarter, they spent money to renovate their homes.

Home Depot Inc., the largest U.S. home-improvement chain, posted fourth-quarter profit that topped analysts’ estimates as a rebound in housing continued to spur spending on renovations.
Net income in the three months ended Feb. 2 fell 0.8 percent to $1.01 billion, or 73 cents a share, from $1.02 billion, or 68 cents, a year earlier, the Atlanta-based company said today in a statement. The average of 25 analysts’ estimates compiled by Bloomberg was 71 cents. The chain’s profit hasn’t trailed estimates for 24 straight quarters, dating back to mid-2008.

Home Depot Inc (NYSE:HD) reported earnings for fourth quarter of fiscal year 2014 (4QFY14) before the opening bell today. Profit for the retailer has topped the Street’s estimate after favorable housing environment incited consumers to spend more on their homes.

By Jeff Williams:With a cautious view of economic recovery in the U.S, Wal-Mart's (WMT) plan to reduce costs, give broader selection and best price guarantees will help drive more customer traffic, and thus create more comparable store sales.

Retail chain Target Corp cut its fiscal-year profit outlook on Wednesday after quarterly sales fell more than expected due to lower demand for electronics and a weak start to a revamp of its grocery business.
Shares of the sixth-largest U.S. retailer dropped 6.2 per cent to US$70.82, erasing their gains for 2016.
Target’s sales declined from the previous quarter as well as from a year earlier, indicating a “significant slowdown in trade,” said Neil Saunders, chief executive officer of research firm Conlumino.

Best Buy Co Inc on Friday showed the first concrete signs of a turnaround in its U.S. stores, with flat same-store sales during the key holiday season, surprising analysts who had expected a decline.
Shares of Best Buy, which is in the midst of a restructuring and faces a looming buyout proposal by founder and former chairman Richard Schulze, jumped 12.1 percent to $13.69.